JioStar to Lay Off 1,100 Employees as Part of Merger Restructuring

New Delhi (The Uttam Hindu): JioStar, the newly formed media and entertainment giant resulting from the merger of Viacom18 and Disney's Star India, will lay off approximately 1,100 employees to cut overlapping roles, following its merger with The Walt Disney Company in November 2024. The layoffs, which reportedly began a month ago, are expected to continue until June 2025 as part of a restructuring process aimed at eliminating redundant positions.

Sources familiar with the matter, who spoke on condition of anonymity, revealed that the job cuts will primarily impact corporate roles in distribution, finance, commercial, and legal departments.

The merger of Viacom18 and Star India to form JioStar created India’s largest media and entertainment entity, with the goal of enhancing operational efficiency and focusing on high-growth sectors, particularly sports and online streaming.

"Whenever two large companies with similar businesses merge, redundancies are inevitable," an industry executive told Mint. "This restructuring is about optimising resources and reducing duplication, ensuring the joint venture operates as a leaner and more efficient entity."

To support affected employees, JioStar is offering a ‘generous severance package.’ Employees being laid off will receive between six to twelve months’ salary, depending on their tenure at the company. For every year worked, employees will receive one month’s full salary, along with a notice period of one to three months.

Valued at Rs 70,352 crore, JioStar aims to compete with global streaming giants like Netflix and Amazon Prime Video, while also strengthening its television business. Reliance Industries holds a majority stake through Viacom18 and direct ownership, with Disney owning 36.84%. Nita Ambani serves as the chairperson, and Uday Shankar is the vice-chairperson of the company.